On 7 October 2026 the office of the European Public Prosecutor's Office (EPPO) in Ostrava filed an indictment against four people over value added tax fraud in electronics trade. At the same time it submitted to the Municipal Court in Prague a proposal to approve plea agreements with four other suspects. According to EPPO the damage exceeds 4.8 billion crowns, and the National Organised Crime Agency (Národní centrála proti organizovanému zločinu, NCOZ) took part in the investigation.[1][2][3]
The nature of the scheme
The investigation carried the code name Záblesk. It concerned a group of people suspected of long-term criminal activity: electronics were imported from third countries, among which EPPO names Hong Kong, the United Arab Emirates and the United States, into the European Union through companies based in Czechia. These companies then stated that they were supplying the goods to companies in Poland, Hungary and Slovakia.[1][2][3]
According to EPPO the foreign companies carried out no real activity, did not take over the goods and paid nothing for them. In reality the goods were taken to warehouses near the Ukrainian border, where other persons collected them and disposed of them without paying the VAT due.[1][2][3]
Amount of damage and possible penalties
EPPO states that the damage exceeds 4.8 billion crowns, about 195.7 million euros, and that the case is among the largest tax frauds in Czechia to date.[2][3] The accused are charged with serious tax fraud; if convicted, according to EPPO they face up to ten years in prison and forfeiture of property.[1][2][3]
The proposed agreements provide for prison sentences of five to six years and forfeiture of property for three of the suspects, and a suspended sentence for one. According to EPPO, all eight persons would face a ten-year ban on doing business.[1][2][3]
Related articles: Městský soud v Praze
Chronology
- — The European Public Prosecutor's Office indicted four people in Ostrava and proposed that the Municipal Court in Prague approve plea agreements for another four in connection with a large-scale VAT fraud involving the import of electronics, which caused damage exceeding 4.8 billion korunas. Novinky.cz Hospodářské noviny
Sources
- Novinky.cz — 7 October 2026
- Hospodářské noviny — 7 October 2026
- Echo24 — 7 October 2026